Pence says Dems will take over Wall St.

The No. 3 House Republican told a group of hedge fund managers Tuesday morning that Democrats are trying to take over the financial services industry with a Wall Street reform bill.

Rep. Mike Pence (R-Ind.) in an appearance before the New York Hedge Fund Roundtable claimed that under the Democrats' financial overhaul plan, churches would have to go to a “credit czar … to obtain a loan to expand its sanctuary.”

Story Continued Below

“Democrats’ solution for financial reform consists of two words: government control,” Pence said. A Republican overhaul, he said, would strengthen consumer protection and provide for audits of the Federal Reserve. It would also force Fannie Mae and Freddie Mac to compete fairly in the marketplace.

He called Banking Committee Chairman Chris Dodd’s legislation “TARP II” and said it is“yet another assault on taxpayers and consumers.”

“The Republican plan exemplifies trust in the wisdom of the American people, rather than in the arrogance of the political elite,” Pence said, according to his prepared remarks.

Pence struck a largely pro-business tone before a friendly audience. He said Republicans favor a free market, plan to end “the era of bailouts” and would not pick “winners and losers in the marketplace” — referring to providing government support to American International Group and Goldman Sachs while letting Lehman Brothers fail.

“While Democrats in Washington are determined to fundamentally restructure the nation, the will of the American people will overcome the ideology of the few,” Pence said. “And America will continue to be the home of freedom and the free market; the place where liberty prevails.”